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To: Mike from La. who wrote (26467)	7/24/1998 11:12:00 PM
From: P.Prazeres	Respond to of 95453

7/24 Atlantic Basin Crude: Prices Higher; Venezuelan Rumors Ignored Closing Market Moves Higher. The International Petroleum Exchange's September Brent futures contract rose 13 cents to $12.83 a barrel. Dated Brent was last reported traded at a discount of 51 cents a barrel to the September IPE futures contract with loading dates of July 28-August 2. Dated Brent is the spot price of Brent cargoes with designated loading dates from the U.K. Shetland Islands' Sullom Voe terminal and is priced at a premium or discount to IPE futures. Refining Economics Refining a barrel of Brent crude at a complex Rotterdam refinery would yield a profit of about 73 cents a barrel, down from $1.64 yesterday, according to Bloomberg calculations. In a U.S. Gulf Coast refinery, Brent yielded a profit of $1.03 a barrel, down from $2.09 yesterday. Behind the Moves Prices were higher, brokers said, as traders ignored the possibility Venezuela might not comply with the additional 200,000 barrels a day in production cuts it pledged at the June OPEC meeting, after announcing cuts of 325,000 barrels a day before the meeting. There were unconfirmed rumors that Venezuela might renege on about 200,000 barrels a day of the 525,000 barrels a day in production cuts that were scheduled to begin July 1, according to a Bridge News story citing unnamed government sources. After the market closed, Dolores Dobarro, deputy minister of Energy and Mines disputed the rumors and said that Venezuela would fully comply with its output cut pledges, although they could be delayed beyond August 1. Contract for difference (c.f.d.) derivative values, which show the weekly price of dated Brent relative to 15-day Brent as a differential, were 8 cents higher for the prompt week. July 27- 31 was quoted at a 52 cent discount to the September futures contract, while Aug. 3-7 was little changed at about a 60 cent discount, and Aug. 10-14 was up 1 cent at a 49 cent discount. Market Outlook Mixed. The September IPE futures contract is expected to trade between $12.50-$13.15 a barrel Monday, brokers said. Prices could rise to near $13.25 a barrel of fall below $12 a barrel early next week, brokers said, depending on whether there is any truth to the rumors Venezuela is not planning to fully comply with its promise to reduce output. That could cause other producers to rethink their output cut pledges.